U.S. asset management giant Vanguard Group Inc. is shutting its main Shanghai office and exiting from a joint venture with Ant Group, sources with knowledge of the matter said. The moves will end Vanguard’s six-year presence in the world’s second-largest economy and a complete exit from China’s 27 trillion yuan (US$3.92 trillion) fund market would come about two years after the U.S. firm said it wouldn’t pursue setting up a fund management unit, a U-turn from previous ambitious expansionary plans in the market. Bloomberg yesterday quoted unnamed sources as saying that Vanguard has notified Chinese regulators of its intentions to shutter its unit in Shanghai. The U.S. firm also plans to exit a robo-advisory joint venture with Jack Ma-backed Ant Group Co., the sources said. Vanguard, with US$7.1 trillion in assets under management globally, once saw significant potential in China’s fund market and its reversal comes as its global peers, including BlackRock Inc. and Fidelity International Ltd., are still racing to build up operations in China. Vanguard’s venture, of which Vanguard owns 49%, booked a loss in 2021 that was much higher than an internal forecast made after it was set up in 2019. (SD-Agencies) |